Tag: Auto Industry
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A Disconnect in Romney’s Plan for Reviving the Auto Industry
Former presidential hopeful Mitt Romney has an op-ed in today’s New York Times titled “Let Detroit Go Bankrupt.” His prescription for saving American automakers through Chapter 11 begins with these two steps: First, their huge disadvantage in costs relative to foreign brands must be eliminated. That means new labor agreements to align pay and benefits […]
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Bankruptcy is the Right Medicine for Automakers
Look at the bright side – GM stock only has $3 farther to fall. (From Yahoo Finance) The more I read and think about a potential further bailout of the auto industry, the nuttier the idea sounds. Michael E. Levine is a former airline executive, so he knows about bankruptcy. He puts it this way […]
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Bailout Wisdom from Various Sources
Bill Whittle recently had a very painful medical mishap, which inspired him to refer to “the $700 billion kidney stone the economy is trying to pass.” He prescribes some therapeutic pain: Every decision we make is based on a risk/reward calculation. If we take away the consequences of risky behavior, we will see more of […]